UK Student Loans

Politicians tell us that “It is only fair that those who have benefited from a university education should contribute to its cost” . If you  believe this then surely those who benefited more, in terms of income, should pay proportionately  more.  This would be a proper graduate tax!

With a proper graduate tax, there would be

• No need for exorbitant  tuition fees, personal graduate debt, and the cost of running the Student Loan Company (currently £300 million / year).  
• No psychological stress, shame or stigma associated with being a “debtor”
• No stressful and potentially flawed decisions to repay debt early
•  A simple decision - going to university will cost me x% of income over threshold
•  A simple voting issue - this political party promises to increase/reduce graduate tax by y%

A proper graduate tax  levied of just over 5% on the 2012+ student/graduate cohorts, would raise almost

the same revenue as the current Plan 5 Student loan scheme.  A 6% graduate tax would raise more than the

current Plan 5 scheme.

This is a  30 year tax with thresholds rising in line with average earnings with a starting threshold at the

current Plan 2 threshold around  £29300

Don’t take my word for it!  Check it our for yourselves by visiting the IFS student finance calculator

Here’s the bombshell !

A proper graduate tax in which ALL

2015+ Graduates paid the tax

for the FULL 30 years  would

reduce the payback rate

above threshold from

 9% to  5%!